BREXIT. It’s the current theme of conversation across most western economies at the moment. With the first (potential) politically motivated murder now having taken place, things are only set to flare up more.
For those of you who are out of the loop; UK is having a vote on 23rd of June to decide whether they leave the EU or not. As of writing this the Out campaign is in the lead, 53:47, but the outcome is not set in stone.
What is set in stone however is the paralyzing fear of uncertainty, investment flows are not occurring and the £ is falling fast:
(Source: LGBB Chart)
The chart above is of Bullish GBP vs. G10 Currency Basket (LGBB), it represents the £ vs. a broad range of other currencies. There is a very noticeable decline since November 2015 – this is the BREXIT effect! For those looking to trade the eventual recovery of the £ you should checkout (NYSEARCA:FXB) or (NYSEARCA:GBB), the prior has better